What are candlestick graphs?

Sometimes referred to as column charts or graphs, candlestick graphs are one of the simplest forms of visual illustration in terms of understanding of security movements for a specified period of time. The Kandlestick Chart will simplify the design, facilitate even the most unnamed investors to get an understanding of opening, high, low and final prices of any investment opportunities.

candlestick graphs are generally understood as a product of the 18th century. Credit for the development of graphs is credited to the Japanese merchant Homma Munchisa. The intention was to collect all technical analysis related to the activities of securities into one easy -to -read source. Different movements on the graph create a design that seems to be a number of candles of different heights. At first glance, it is possible for the observer to grab the movement of prices of various stocks, bonds, commodities and possibilities. Quickly Easy Tool to Use in Deciding on Purchase or Sales of Security, Candle Graphs allow you to review a large amount of information in one JEdnoduchém process.

At the beginning of the 20th century, in most countries, graphs of candlesticks became an extended investment tool. As electronic communication evolved, the process of creating candlestick graphs became more and more easy. With the advent of a personal computer and software that can be used to create a variety of charts and graphs from the data entered in tables, the use of candlestick graphs even more pronounced.

One of the innovations of newer versions of candlestick graphs is the use of black and white rods or candles to indicate current market conditions affecting prices. When the market responds to the circumstances that indicate the bull market, the candle will be white. For markets that seem to be exposing properties that are usually associated with the bear market, the candle is often displayed black.